Using the direct method of preparing the statement of cash flows, which of the following is not an activity generating operating cash flows?
A)Payments to employees
B)Payments to suppliers
C)Repayment of debt
D)Payments for utilities expenses

Question

Quizplus · Accepted Answer

Repayment of debt is a financing activity and not an operating activity. Operating activities include cash inflows and outflows related to revenue, expenses, assets, and liabilities that are part of the company's core business operations. Payments to employees, payments to suppliers, and payments for utilities expenses are all examples of operating activities.

Using the Direct Method of Preparing the Statement of Cash